Phuntsholing

: Bhutan

BIDDING

DOCUMENT
for

The Eelctrification of residential commercial

Building.

Bid Identification no.

CONTRACT/RESIDENTIAL BUILDING/2016-10/11

Table of Contents
Advertisement
Notice Inviting Tender
Section I. Instructions to Bidders (ITB)........................................................................1
Notes on the Instructions to Bidders........................................................................ 1
Section II. Bidding Data Sheet...................................................................................24
Section III. Eligible Countries.....................................................................................29
Section IV. Forms of Bid, Qualification Information and Evaluation Table,
Letter of Acceptance, and Contract.................................................................31
1. Contractors Bid.....................................................................................................31
2. Qualification Information...................................................................................... 33
3. Letter of Acceptance.............................................................................................41
4. Contract..43
Section V. General Conditions of Contract (GCC).....................................................44
Notes on General Conditions of Contract..............................................................44
Table of Clauses........................................................................................................45
Section VI. Special Conditions of Contract................................................................69
Section VII.................................................................................................................. 73
Specifications and Performance Requirements.........................................................73
Notes on Specifications and Performance Requirements..................................73
Section VIII. Drawings............................................................................................... 74
Notes on Drawings................................................................................................... 74
Section IX. Bill of Quantities......................................................................................75
Notes on the Bill of Quantities.................................................................................75
Section X. Security Forms.........................................................................................76
Notes on Forms of Securities..................................................................................76
Form of Bid Security (Bank Guarantee)................................................................77
Performance Demand Bank Guarantee................................................................78
Bank Guarantee for Advance Payment................................................................. 79
Invitation for Bids........................................................................................................ 80
Notes on the Invitation for Bids (IFB)..................................................................... 80

Telephone: 325111/324468/326694, Fax: 324852 / 323634

Ref No. CONTRACT/RESIDENTIAL BUILDING/2016-10/

14th November, 2014

To,
The Marketing Manager,
Kuensel Corporation,
Thimphu.
Subject:

Advertisement

Sir/Madam,
Kindly publish the Invitation of Bids attached herewith in the English edition of Kuensel publication on
Thursday, 10th November, 2016.
The bill for the same may be sent to the office of the undersigned for verification and payment.
Thanking you,
Yours Sincerely,

(Kunzang Namgyel)
Chief Engineer
Copy to:
The Director General, DMS, MoH, Thimphu for kind information.
The Director , GNHC, Thimphu for kind information.
The Offtg. Director, DMSHI, MOH, Thimphu for kind information.
The Chief Planning Officer, PPD, MoH, Thimphu for kind information.
The Chief Administrative Officer, AFD, MoH, Thimphu for kind information.
The Head, Construction Development Board, (CDB), Thimphu for information.
Office copy.

14th November, 2014

Ref No. 2/HIDD/DMSHI/2014-2015/216

INVITATION OF BIDS

The Ms. Rami Didi, Thimphu invites sealed item rate bids from the qualified Bhutanese Bidders for execution of
following work.

Name of Work

Electrification of Three
Storied
Residential
commercial Building

Category

Duration

EMD
(Nu.)

Large

5 months

8 Lakh

Date & time

of
submission

Date, time &

venue of opening

26/12/2016
till 12.30 PM

26/12/2016,
2.30PM at
Conference
MoH

1. The biddings will be conducted through National Competitive Bidding procedures as specified
in the RGoB procurement manual.
2. A complete set of bidding document can be downloaded by the interested bidders from the
CDBs web site or Ministry of Healths web site www.ramididi.bt w.e.f 10th November, 2016.
3. All bids shall be accompanied by a bid security of fixed amount as mentioned above in
the form of bank guarantee/cash warrant drawn in favour of Chief Administrative Officer,
AFD, Ministry of Health, Thimphu.
For further query, contact Chief Engineer at telephone no. 325111/328190/324468.

Sd/CHIEF ENGINEER

Minihall

Introduction
These Standard Bidding Documents are intended as a model for ad measurement (unit prices or unit
rates in a Bill of Quantities) and lump sum types of Contract, which are the most common in Works
contracting. Lump sum contracts are used in particular for buildings and other forms of construction
where the Works are well defined and are unlikely to change in quantity or specifications, and where
encountering difficult or unforeseen site conditions (for example, hidden foundation problems) is
unlikely. The main text refers to ad measurement contracts. Alternative clauses or texts are
1
supplied for use with lump sum contracts.
Care should be taken to check the relevance of the provisions of the standard documents against the
requirements of the specific Works to be procured. The following directions should be observed when
using the documents:
(a)

All the documents listed in the Table of Contents are normally required for the
procurement of Works. However, they should be adapted as necessary to the
circumstances of the particular Project.

(b)

Before issuing these Bidding Documents the Employer shall prepare the Bidding Data
Sheet (Section II), Special Conditions of Contract (Section VI), and Sections VII, VIII
and IX which deal with Specifications and Performance Requirements, Drawings, and
Bill of Quantities respectively. The Employer should read and/or provide the
information specified in the italicized notes inside brackets. In the few instances where
the Bidder is requested to provide information, the note specifies it. The footnotes
and notes for the Employer are not part of the text; they should not be
incorporated in the Bidding Documents issued to the Bidders.

(c)

These Bidding Documents are intended to serve on a repetitive basis. Modifications

for specific Project or Contract needs should be provided only in the Bidding Data
Sheet and the Special Conditions of Contract, as amendments to the Instructions to
Bidders and the General Conditions of Contract respectively.

(d)

The notes inside unshaded boxes, as well as others intended as guidance for the
Employer, are not part of the text, but rather contain instructions for the user, as do
the Preface and this Introduction section. They should not be incorporated in the
Bidding Documents. The cover (first) page should be modified as required to identify
the Bidding Documents as to the names of the Project, Contract and Employer, in
addition to date of issue.

(e)

The notes inside boxes with a shaded background should be retained in the issued
Bidding Documents, since these provide important guidance to Bidders.

(f)

The standard documents have been prepared for bidding where post qualification
applies. However, with relatively minor modifications they also can be used where
prequalification applies. The process of prequalification of Bidders is not covered in
these standard documents.

Section I. Instructions to Bidders (ITB)

Notes on the Instructions to Bidders

This section of the Bidding Documents should provide the information necessary for
Bidders to prepare responsive Bids, in accordance with the requirements of the
Employer. It should also give information on Bid submission, opening and evaluation,
and on the award of Contract.
Matters governing the performance of the Contractor, payments under the Contract, or
matters affecting the risks, rights and obligations of the parties under the Contract are
not normally included in this Section, but rather under Section V, General Conditions of
Contract and/or Section VI, Special Conditions of Contract. If duplication of a subject is
inevitable in the different sections of the documents, care must be exercised to avoid
contradictions between clauses dealing with the same matter.
These Instructions to Bidders shall not be part of the Contract and shall cease to have
effect once the Contract is signed.

Section I: Instruction to Bidders

(ITB)

Table of Clauses
A General.............................................................................................................................................. 3
1. Scope of Bid....................................................................................................................... 3
2. Fraud and Corruption.......................................................................................................... 3
3. Eligible Bidders................................................................................................................... 5
4. Qualifications of the Bidder................................................................................................. 7
5. One Bid per Bidder............................................................................................................. 9
6. Cost of Bidding................................................................................................................... 9
7. Site Visit.............................................................................................................................. 9
B. Bidding Documents..................................................................................................................... 10
8. Content of Bidding Documents......................................................................................... 10
9. Clarification of Bidding Documents................................................................................... 10
10.......................................................................................Amendment of Bidding Documents
11
C. Preparation of Bids...................................................................................................................... 11
11.................................................................................................................... Language of Bid
11
12............................................................................................. Documents Comprising the Bid
11
13............................................................................................................................. Bid Prices
11
14............................................................................................ Currencies of Bid and Payment
12
15............................................................................................................................ Bid Validity
13
16........................................................................................................................... Bid Security
......................................................................................................................................... 13
17..........................................................................................Alternative Proposals by Bidders
......................................................................................................................................... 14
18.................................................................................................... Format and Signing of Bid
......................................................................................................................................... 15
D. Submission of Bids...................................................................................................................... 15
19................................................................................................. Sealing and Marking of Bids
15
20........................................................................................... Deadline for Submission of Bids
16
21............................................................................................................................... Late Bids
16
22................................................................Withdrawal, Substitution and Modification of Bids
16
E. Bid Opening and Evaluation........................................................................................................ 16
23.......................................................................................................................... Bid Opening
16
24....................................................................................................................... Confidentiality
18
25............................................................................................................... Clarification of Bids
18
26.................................................Examination of Bids and Determination of Responsiveness
18
27............................................................................................................... Correction of Errors
19
28.................................................................................................. Currency for Bid Evaluation
19
29......................................................................................Evaluation and Comparison of Bids
19

Section I: Instruction to Bidders

(ITB) 30..........................................................................................Preference

for Domestic Bidders

21
F. Award of Contract........................................................................................................................ 21
31....................................................................................................................... Award Criteria
21
32. Employers Right to Accept any Bid and to Reject any or all Bids..................................... 21
33. Notification of Award and Signing of Contract................................................................... 22
34. Performance Security....................................................................................................... 22
35. Advance Payment and Security........................................................................................ 23
36. Adjudicator........................................................................................................................ 23

Instructions to Bidders (ITB)

A. General

1. Scope of Bid

1.1
The Employer as defined in
Section II, Bidding Data Sheet
(BDS), invites Bids for the construction of Works, as described in
the BDS and Section VI, Special Conditions of Contract (SCC).
The name and identification number of the Contract is provided in
the BDS and the SCC.
1.2 The successful Bidder will be expected to complete the Works by
the Intended Completion Date specified in the Special Conditions
of Contract.

2.
Fraud
and Corruption

2.1

It is RGoBs policy to require that Employers, Bidders, Suppliers,

Contractors and their Subcontractors observe the highest
standards of ethics during the procurement and execution of
3
contracts. In pursuance of this policy, the RGoB:
(a)

2
3

defines, for the purposes of this provision, the terms set forth
below as follows:
4

(i)

corrupt practice is the offering, giving, receiving or

5
soliciting, directly or indirectly, of anything of value to
influence improperly the actions of another party;

(ii)

fraudulent practice is any intentional act or

omission,
including a misrepresentation, that
knowingly or recklessly misleads, or attempts to
mislead, a party to obtain a financial or other benefit
or to avoid an obligation;

(iii)

collusive practice is an arrangement between two

or more parties designed to achieve an improper
purpose, including to influence improperly the actions
of another party;

(iv)

coercive practice is impairing or harming, or

threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence
improperly

See also definitions in Section V, General Conditions of Contract (GCC).

In this context, any action taken by a Bidder, Supplier, Contractor or a Subcontractor to influence the procurement
process or contract execution for undue advantage is improper.
another party refers to a public official acting in relation to the procurement process or contract execution. In this
context, public official includes staff and employees of any organizations (including any institutions providing finance
for the Works) taking or reviewing procurement decisions.

anything of value includes, but is not limited to, any gift, loan, fee, commission, valuable security or other asset or
interest in an asset; any office, employment or contract; any payment, discharge or liquidation of any loan, obligation or
other liability whatsoever, whether in whole or in part; any other services, favour or advantage, including protection from
any penalty or disability incurred or apprehended or from any action or proceeding of a disciplinary or penal
nature, whether or not already instituted and including the exercise or the forbearance from the exercise of any
right or any official power or duty.
a party refers to a public official; the terms benefit and obligation relate to the procurement process or contract
execution; and the act or omission is intended to influence the procurement process or contract execution.
parties refers to participants in the procurement process (including public officials) and an improper purpose includes
attempting to establish bid prices at artificial, non competitive levels.
a party refers to a participant in the procurement process or contract execution.

the actions of a party;

(v)

"obstructive practice" is
(aa) deliberately destroying, falsifying, altering or
concealing of evidence material to the
investigation or making false statements to
investigators in order to materially impede any
investigation into allegations of a corrupt,
fraudulent, coercive or collusive practice; and/or
threatening, harassing or intimidating any party
to prevent it from disclosing its knowledge of
matters relevant to the investigation or from
pursuing the investigation; or
(bb) acts intended to materially impede the exercise
of the inspection and audit rights of the Employer
or any organization or person appointed by the
Employer and/or any relevant RGoB agency
provided for under ITB Sub-Clause 3.1 (d) below.

(b)

will reject a proposal for award if it determines that the Bidder recommended for
award has, directly or through an agent, engaged in corrupt, fraudulent, collusive,
coercive or obstructive practices in competing for the contract in question.

(c)

will sanction a firm or individual, including declaring them ineligible, either

indefinitely or for a stated period of time, to be awarded a contract if it at any time
determines that they have, directly or through an agent, engaged in corrupt,
fraudulent, collusive, coercive or obstructive practices in competing for, or in
executing contract;

(d)

will have the right to require that a provision be included in Bidding Documents
and in contracts, requiring Bidders, Suppliers, Contractors and their Subcontractors
to permit the Employer, any organization or person appointed by the Employer
and/or any relevant RGoB agency to inspect their accounts and records and other
documents relating to the Bid submission and contract performance and to have
them audited by auditors appointed by the Employer;

(e)

requires that Bidders, as a condition of admission to eligibility, execute and attach to

their bids an Integrity Pact Statement in the form provided in Section IV, Bidding
Forms. Failure to provide a duly executed Integrity Pact Statement shall result in
disqualification of the Bid; and

(f)

will report any case of corrupt, fraudulent, collusive, coercive or obstructive practice
to the relevant RGoB agencies, including but not limited to the Anti-Corruption
Commission (ACC) of Bhutan, for necessary action in accordance with the statutes
and provisions of the relevant agency.

3. Eligible
Bidders

2.
2

Furthermore, Bidders shall be aware of the provision stated in

GCC Sub-Clause 59.1

3.
1

A Bidder, and all parties constituting the Bidder, shall have

the nationality as specified in the Section II Bid Data Sheet &
to the provisions of Section III, Eligible Countries. A Bidder
subject
shall
be deemed to have the nationality of a country if the Bidder is
a
citizen or is constituted, incorporated, or registered and
operates
in conformity with the provisions of the laws of that country.
This
criterion shall also apply to the determination of the nationality
of
proposed subcontractors or suppliers for any part of the
Contract
including related services.

3.
2

A Bidder shall not have a conflict of interest. All Bidders found

have conflict of interest shall be disqualified. Bidders may
to
be
considered to have a conflict of interest with one or more parties
in
this bidding process, if:
(a) they have at least one controlling partner in common; or
(b)

they receive or have received any direct or indirect subsidy

from either party; or

(c)

they have the same authorized legal representative for

purposes of this Bid; or

(d)

they have a relationship with each other, directly or through

common third parties, that puts them in a position to have
access to information about or influence on the Bid of another
Bidder, or influence the decisions of the Employer regarding
this bidding process; or

(e)

a Bidder participates in more than one Bid in this bidding

process. Participation by a Bidder in more than one Bid shall
result in the disqualification of all Bids in which such Bidder is
involved. However, this does not limit the inclusion of the
same subcontractor in more than one Bid; or

(f)

a Bidder or any of its affiliates participated as a consultant in

the preparation of the design or technical specifications of the
Works that are the subject of the Bid or in any other way
provided consulting services in any aspect of the preparatory
stages leading up to the issue of these Bidding Documents;
or

(g)

a Bidder or any of its affiliates has been hired (or is proposed

to be hired) by the Employer as Project Manager for the
Contract implementation; or

(h) a Bidder or any of its affiliates employs or otherwise engages a

close relative of a civil servant who either is employed by the
Employer or has an authority over the bidder or its affiliates or

over the bid. For the purposes of this Sub-Clause a close

relative is defined as immediate family which includes father,
mother, brother, sister, spouse and own children.

3.3

A Bidder that is determined to be ineligible pursuant to any of the

provisions of this Bidding Document shall not be eligible to be
awarded a Contract.

3.4

Government-owned enterprises in Bhutan shall be eligible only if

they can establish that they (i) are legally and financially
autonomous, (ii) operate under commercial law, and (iii) are not a
dependent agency of the Employer.

3.5

Bidders shall provide such evidence of their continued eligibility

satisfactory to the Employer as the Employer shall reasonably
request.

3.6

A firm shall be excluded if:

(a)

as a matter of law or official regulation, Bhutan prohibits

commercial relations with the country in which the firm is
constituted, incorporated or registered; or

(b) by an act of compliance with a decision of the United Nations

Security Council taken under Chapter VII of the Charter of
the United Nations, Bhutan prohibits any import of goods or
contracting of Works or services from that country in which
the firm is constituted, incorporated or registered or any
payments to persons or entities in that country.
3.7

A Bidder shall also be excluded if:

(a)

he is insolvent or is in receivership or is a bankrupt or is in

the process of being wound up, or has entered into an
arrangement with his creditors; or

(b)

his affairs are being administered by a court, judicial officer

or appointed liquidator; or

(c)

he has suspended business or is in any analogous

situation arising from similar procedures under the laws
and regulations of his country of establishment; or

(d) he has been found guilty of professional misconduct by a

recognized tribunal or professional body; or
(e)

he has not fulfilled his obligations with regard to the payment

of taxes, social security or other payments due in
accordance with the laws of the country in which he is
established or of the Kingdom of Bhutan; or

(f)

he is or has been guilty of serious misrepresentation in

supplying information required for any prior registration with

the Employer or the Construction Development Board of

Bhutan; or
(g) he has been convicted of fraud and/or corruption by a
competent authority; or
(h)

he has not fulfilled his contractual obligations with the Employer

in the past; or
(j) he has been debarred from participation in public procurement
by any competent authority as per law.

4. Qualifications of the
Bidder

4.1

All Bidders shall provide in Section IV, Forms of Bid, Qualification

Information, Letter of Acceptance, and Contract, a preliminary
description of the proposed work method and schedule, including
drawings and charts, as necessary.

4.2

In the event that pre-qualification of potential Bidders has been

undertaken, only Bids from pre-qualified Bidders shall be
considered for award of Contract. These qualified Bidders should
submit with their Bids any information updating their original prequalification applications or, alternatively, confirm in their Bids that
the originally submitted pre-qualification information remains
essentially correct as at the date of Bid submission. The update or
confirmation should be provided in Section IV.

4.3

If the Employer has not undertaken pre-qualification of potential

Bidders, all Bidders shall include the following information and
documents with their Bids in Section IV, unless otherwise stated in
the BDS:
(a)

Legal status: copies of original documents defining the

constitution or legal status, place of registration, and principal
place of business of the Bidder; written power of attorney of
the signatory of the Bid to commit the Bidder;

(b)

General work experience: annual turnover for each of the

last three (3) calendar years for construction works;

(c)

Similar work experience: experience in works of a similar

nature and size for each of the last five (5) calendar years,
and details of work under way or contractually committed;
and clients who may be contacted for further information on
those contracts;

(d)

Equipment: list of construction equipment owned by the

Contractor and those proposed to be hired to be used for
implementation of the Contract;

(e)

Manpower: qualifications and experience of key site

management and technical personnel proposed for this
Contract. A person having a valid contract license cannot be
an employee of any bidder

(f)

Performance of previous work: performance score card

issued by the Procuring Agencies for works done in the last
five (5) calendar years;

(g)

Financial
capacity:
evidence
of

adequacy of working capital for this Contract (access to

line(s) of credit);
(h)

References: authority to seek references from the Bidders

bankers;

4.4

4.5

(i)

Litigation: information regarding any litigation, current or

during the last five (5) years, in which the Bidder was/is
involved, the parties concerned, and the disputed amounts;
and awards. A consistent history of litigation or arbitration
awards against the Applicant or any partner of a JV/C/A may
result in disqualification ;

(j)

Subcontracting: proposals for subcontracting components of

the Works amounting to more than twenty percent (20%) of
the Contract Price. The ceiling for subcontractors
participation is stated in the BDS.

Bids submitted by a Joint Venture, Consortium or Association (JV/C/A) of two or more firms
as partners shall comply with the following requirements, unless otherwise stated in the BDS:
(a)

the Bid shall include all the information listed in ITB Sub- Clause 4.3 above for each
JV/C/A partner;

(b)

the Bid shall be signed so as to be legally binding on alI partners;

(c)

all partners shall be jointly and severally liable for the execution of the Contract in
accordance with the Contract terms;

(d)

one of the partners shall be nominated as being in charge, authorized to incur

liabilities, and receive instructions for and on behalf of any and all partners of the JV/C/A;

(e)

the execution of the entire Contract, including payment, shall be done exclusively with
the partner in charge; and

(f)

a copy of the JV/C/A Agreement entered into by the partners shall be submitted with the
Bid; or a Letter of Intent to execute a JV/C/A Agreement in the event of a successful Bid
shall be signed by all partners and submitted with the Bid, together with a copy of the
proposed Agreement.

To qualify for award of the Contract, Bidders shall be evaluated against the following
technical qualifying criteria and scores awarded accordingly:
(a)

Similar works experience : aggregate size of similar works (maximum three) or size of
9
the largest similar work in the last five (5) calendar years;

(b)

Access to adequate equipment: list of construction equipment owned by the

Contractor and those proposed to be hired to be used for implementation of the
Contract against the prescribed list specified in the BDS;

(c)

Availability of skilled manpower: availability of skilled and

required for the timely and quality

experienced manpower

This amount is usually not less than 1 to 1.5 times the estimated annual cash flow for the Contract.

execution of the work against the list of manpower with the

desired qualification and experience specified in the BDS in
the BDS;
(d)

Average performance score from the previous works carried out in the last five (5)
calendar years;

(e)

Bid capacity of the contractor against the quoted bid calculated using the following
formula:
Bid Capacity = 2 * A* N B
Where A= Average turnover of the Contractor over the last 3
calendar years
N= Estimated duration of the Project to be tendered
B= Portion of other ongoing Works to be completed in the period
that overlaps with the current projects duration (that is N and
(f)

Access to or Credit facilities: The amount of line of credit is specified

in BDS.

4.6

In the case of joint ventures, the individual credentials of the joint venture partners need to
be averaged using their stake in the JV for the purpose of evaluation under the parameters
of Similar work experience, performance score from previous work, Bid Capacity and Credit
line available. For the parameters of equipment, manpower, Status, Employment of
VTI/skilled local labourer and Internship to VTI, the resources or information committed /
provided by the JV as a single entity will be considered for award of points.

4.7

Domestic bidders and joint ventures, consortia or associations of domestic bidders who may
be eligible for a margin of preference in Bid evaluation shall supply all information to satisfy
the criteria for eligibility as described in ITB Clause 3 of these Instructions to Bidders.
4.8 Financial bids of only those Bidders who meet the minimum technical
score specified in the BDS will be considered for award of the work.

5. One Bid per

Bidder

5.1 Each Bidder shall submit only one Bid, either individually or as a
partner in a JV/C/A. A Bidder who submits or participates in more
than one Bid (other than as a subcontractor or in cases of
alternatives that have been permitted or requested) shall cause all
the proposals with the Bidders participation to be disqualified.

6. Cost of Bidding

6.1

The Bidder shall bear all costs associated with the preparation and
submission of his Bid, and the Employer shall in no case be
responsible or liable for those costs.

7. Site Visit

7.1

The Bidder, at the Bidders own responsibility and risk, is

encouraged to visit and examine the Site of Works and its
surroundings and obtain all information that may be necessary for
preparing the Bid and entering into a contract for construction of

the Works. The costs of visiting the Site shall be at the Bidders
own expense.

Section I: Instruction to Bidders

(ITB)

1
0

B. Bidding Documents
8. Content of
Bidding
Documents

9. Clarification of
Bidding
Documents

8.1

The set of Bidding Documents comprises the documents listed in the

table below and addenda issued in accordance with ITB Clause 10:
Section I:
Section II:

Instructions to Bidders
Bidding Data Sheet
Eligible Countries
Section IV:
Forms of Bid, Qualification Information and Evaluation
Table , Letter of Acceptance, and Contract
Section V:
General Conditions of Contract
Section VI:
Special Conditions of Contract
Section VII:
Specifications and Performance Requirements
Section VIII: Drawings
10
Section IX:
Bill of Quantities - This (or the Activity Schedule in
the case of lump sum Contracts) comprises a paper
hard copy and an electronic copy on CD-ROM.
Section X:
Forms of Securities and Invitation for Bids

9.1

A prospective Bidder requiring any clarification of the Bidding

Documents may notify the Employer in writing, including by cable,
facsimile, telex or electronic mail, at the Employers address indicated
in the BDS. The Employer shall respond to any request for clarification
11
received earlier than S e ve n (7) days prior to the deadline for
submission of bids. Copies of the Employers response shall be
forwarded to all purchasers of the Bidding Documents, including a
description of the inquiry, but without identifying its source. Should the
clarification result in changes to the essential elements of the Bidding
Documents, the Employer shall amend the Bidding Documents,
following the procedure in ITB Clause 10 and ITB Sub-Clause 20.2.

9.2

The bidder or his official representative is invited to attend a pre-bid

meeting, which will take place at the place and time stated in BDS.

9.3

The purpose of the meeting will be to clarify issues and to answer

questions on any matter that may be raised at that stage.

9.4

The bidder is requested to submit any questions in writing or by

facsimile or email to reach the Employer not later than one week
before the bid submission.

9.5

Minutes of the meeting, including the text of the questions

raised (without identifying the source of inquiry) and
the
responses given will be transmitted without delay to all
purchasers of the bidding documents. Any modification of the bidding
documents listed in Sub-Clause 9.1 which may become necessary as a
result of the pre-bid meeting shall be made by the Employer exclusively
through the issue of an Addendum pursuant to Clause 10 and

Section I: Instruction to Bidders

(ITB)
not through

1
1

the minutes
of the pre-bid
meeting.

10
11

In lump sum contracts, delete Bill of Quantities and replace with Activity Schedule.
It may be necessary to extend the deadline for submission of bids if the Employers response results in substantial

9.6 Non-attendance of the pre-bid meeting will not be a cause

for disqualification of a bidder.

10.1 Before the deadline for submission of Bids, the Employer may
modify the Bidding Documents by issuing addenda.

10. Amendmen
t of Bidding
Documents

10.2 Any addendum thus issued shall be part of the Bidding

Documents, shall be binding on all Bidders and shall be
communicated in writing,
including by cable, facsimile, telex or electronic mail, to all
12
purchasers of the Bidding Documents. Prospective Bidders shall
acknowledge receipt of each addendum in writing, including by
electronic mail, to the
Employer.
10.3 To give prospective Bidders reasonable time in which to take an
addendum into account in preparing their Bids, the Employer
shall extend, as necessary, the deadline for submission of Bids,
in accordance with ITB Sub-Clause 20.2 below.

C. Preparation of Bids
11. Language
of Bid
12. Documents

Comprisin
13
g the Bid

11.1 All documents relating to the Bid shall be in the language specified in
the BDS.
12.1 The Bid submitted by the Bidder shall comprise the following:
(a)

The Bid form (in the format indicated in Section IV Forms

of Bid, Qualification Information, Letter of Acceptance, and
Contract);

(b)

Bid Security in accordance with Clause 16;

(c)

Priced Bill of Quantities - this must be submitted in paper

form, signed by the duly authorized signatory of the Bidder, and
also in electronic form on CD-ROM, if required by the
Employer;

(d)

Qualification Information Form and Documents;

14

(e)ITB Integrity
Statement
changes to the Bidding Documents. See
Clause 10Pact
below.

(Annexure "A)

Section I: Instruction to Bidders

(ITB) (f)
Alternati

ve offers
where
invited;

13.

and any other materials required to be completed and submitted 0by

Bidders, as specified in the BDS.

13.1 The Contract shall be for the whole Works, as

Bid Prices
15
described in ITB Sub- Clause 1.1, based on the priced Bill of Quantities submitted by the
Bidder.

1
2

Section I: Instruction to Bidders

(ITB)

13.2 The Bidder shall fill in rates and prices for all items of the Works
16
described in the Bill of Quantities. Items for which no rate or price is
entered by the Bidder shall not be paid for by the Employer when
executed and shall be deemed covered by the other rates and prices in
the Bill of Quantities. Corrections, if any, shall be made by crossing out,
initialing, dating and rewriting.
13.3 The Bidder shall quote its final all-inclusive net
price, including all incidental costs, for
carrying out the Contract. All duties, taxes
and other levies payable by the Contractor
under the Contract, or for any other cause,
as of the date 30 days prior to the deadline for
submission of Bids, shall be included in
the rates, prices and total Bid price
17
submitted by the Bidder.
18

14. Currencie
s of Bid and

13.4 The rates and prices quoted by the Bidder

shall be subject to adjustment during the
19
performance of the Contract if provided for
in the BDS and the SCC and the provisions
of GCC Clause 47 of the General Conditions
of Contract. The Bidder shall submit with the
Bid all the information required under the
SCC and GCC Clause 47 of the
General Conditions of Contract.
20

Payment

14.1 The unit rates and prices shall be quoted by the Bidder entirely in
Ngultrum (Nu). Foreign currency requirements shall be indicated as a
21
percentage of the Bid price (excluding provisional sums ) and shall be
payable at the option of the Bidder in up to three foreign currencies.

14.2 The rates of exchange to be used by the Bidder in arriving at the local currency equivalent
and the percentage(s) mentioned in ITB Sub- Clause 14.1 above shall be the selling rates
for similar transactions established by the authority specified in the BDS prevailing on the date
30 days prior to the latest deadline for submission of Bids. These
exchange rates shall apply for all payments so that no exchange risk
shall be borne by the Bidder. If the Bidder uses other rates of
exchange, the provisions of ITB Clause 28.1 shall apply. In any case,
payments shall be computed using the rates quoted in the Bid.
14.3 Bidders shall indicate details of their expected foreign currency requirements in the Bid.
14.4 Bidders may be required by the Employer to clarify their foreign currency requirements and to
22
substantiate that the amounts included in the rates and prices , if required in the BDS,
are reasonable and responsive to ITB Sub-Clause 14.1.
14.5 In case of International Procurement from countries other than India, the procuring agency
may invite bids in convertible currencies. The bids shall however, be evaluated in
accordance with Sub-Clause 14.2

above, but the payment shall be made in the currency of bid.

15.

Bid Validity

15.1 Bids shall remain valid for the period specified in the

BDS.
15.2 In exceptional circumstances, the Employer may request that the
Bidders extend the period of validity for a specified additional period.
The request and the Bidders responses shall be made in writing or by
electronic mail. The Bid Security required pursuant to ITB Clause 16
shall be extended to 30 days after the deadline of the extended Bid
validity period. A Bidder may refuse the request without forfeiting the
Bid Security. The refusal to extend the bid by the bidder will make the
bid invalid and shall not be further considered for evaluation and award,
A Bidder agreeing to the request shall not be required or permitted to
modify its Bid, except as provided for in ITB Clause 16.
15.3 In the case of contracts in which the Contract Price is fixed (not subject
to price adjustment), if the period of Bid validity is extended beyond 60
days, the amounts payable in local and foreign currency to the Bidder
selected for award shall be adjusted as specified in the request for
extension. Bid evaluation shall be based on the Bid Price without taking
the above correction into consideration.

16.

Bid Security

16.1 The Bidder shall furnish, as part of the Bid, a

Bid Security as specified in the BDS.

16.2 The Bid Security shall be in fixed amount as specified in BDS and
denominated in Ngultrum (Nu) or the currency of the Bid or in another
freely convertible currency, and shall:
(a)

at the Bidders option, be in any of the following forms:

(i) a demand unconditional bank guarantee; or
(ii)a account payee demand draft; or
(iii)

a account payee cash warrant.

(b)

be issued by financial institution in Bhutan acceptable to the

Employer selected by the Bidder and located in any eligible
country. If the institution issuing the Bid Security is located
outside Bhutan, it shall have a correspondent financial institution
located in Bhutan to make it enforceable.

(c)

in the case of a bank guarantee, be substantially in accordance

with the form of Bid Security included in Section X, Security
Forms, or other form approved by the Employer prior to Bid
submission;

(d)

be payable promptly upon written demand by the Employer in

case the conditions listed in ITB Sub-Clause 16.5 are invoked;
(e)

(f)

be submitted in its original form; copies shall not be accepted;

remain valid for a period of 30 days beyond the validity period of

the Bids, as extended, if applicable, in accordance with ITB SubClause 15.2.

16.3 Any Bid not accompanied by a responsive Bid Security shall be

Rejected by the Employer as non-responsive.
16.4 The Bid Securities of unsuccessful Bidders shall be returned as
promptly as possible upon the successful Bidder furnishing the
Performance Security and in any event not later than 30 days after the
expiration of the validity of the unsuccessful Bidders Bid.
16.5 The Bid Security may be forfeited
(a)

if a Bidder withdraws its Bid during the period of Bid validity

specified by the Bidder on the Bid Submission Sheet, except as
provided for in ITB Sub-Clause 15.2; or

(b)

if the Bidder that submitted the lowest evaluated Bid does not
accept the correction of the Bid price pursuant to Clause 27; or

(c)

if the successful Bidder fails within the specified time limit to

(i) sign the Contract; or
(ii)furnish the required Performance Security

17.
Alte
rnative
Proposal
s by
Bidders

18. Format
and Signing of
Bid

16.6 The Bid Security of a JV/C/A must be in the

name of the JV/C/A that submits the Bid. If
the JV/C/A has not been legally constituted
at the time of bidding, the Bid Security shall
be in the names of all future partners as
named in the letter of intent.
17.1 Alternatives shall not be considered, unless specifically allowed in the
BDS. If so allowed, ITB Sub-Clauses 17.1 and 17.2 shall govern, and
the BDS shall specify which of the following options shall be allowed:
(a)

Option One. A Bidder may submit alternative Bids with the base
Bid and the Employer shall only consider the alternative Bids
offered by the Bidder whose Bid for the base case was
determined to be the lowest-evaluated Bid, or

(b)

Option Two. A Bidder may submit an alternative Bid with or

without a Bid for the base case. All Bids received for the base
case, as well as alternative Bids meeting the Technical
Specifications and Performance Requirements pursuant to
Section VII, shall be evaluated on their own merits.

17.2 Alternative Bids shall provide all information necessary for a complete
evaluation of the alternative by the Employer, including design
calculations, technical specifications, breakdown of prices, proposed
construction methods and other relevant details.
18.1 The Bidder shall prepare one original of the documents comprising the
Bid as described in ITB Clause 12, bound with the volume containing

the
Form
of Bid, and
clearly
marked
ORIGINA

L. In addition, the Bidder shall submit copies of the Bid, in the

number specified in the BDS, and clearly marked as COPIES. In
the event of any discrepancy between the original and any copies, or
between the original paper form of the Bill of Quantities, the original
shall prevail.

18.2 The original and all copies of the Bid shall be typed or written in indelible ink and shall be
signed by a person or persons duly authorized to sign on behalf of the Bidder, pursuant to
ITB Sub-Clause
4.3 (a). Unsigned Form of Bid & BOQ shall make the bid nonresponsive. All pages of the Bid where entries or amendments have
been made shall be initialed by the person or persons signing the Bid.
18.3 The Bid shall contain no alterations or additions, except those to comply with instructions
issued by the Employer, or as necessary to correct errors made by the Bidder, in which case
such corrections shall be initialed by the person or persons signing the Bid.
18.4 The Bidder shall furnish information as described in the Form of Bid on commissions or
gratuities, if any, paid or to be paid to agents relating to this Bid, and to contract execution if the
Bidder is awarded the contract.

D. Submission of Bids
19. Sealing

and
Marking of
23
Bids

19.1 Bidders may always submit their Bids by mail or by hand. When so
specified in the BDS, Bidders shall have the option of submitting their
Bids electronically. Bidders submitting Bids electronically shall follow the
procedures specified in the BDS. The Bidder shall seal the original and
all copies of the Bid, including alternative Bids if permitted in accordance
with ITB Clause 17, in separate inner envelopes contained within one
outer envelope. All envelopes shall be sealed with adhesive or other
sealant to prevent reopening.
19.2 The inner envelopes shall
(a)

be signed across their seals by the person authorized to sign the

Bid on behalf of the Bidder; and

(b)

be marked ORIGINAL, ALTERNATIVE (if any) and COPIES;

19.3 The outer envelope shall:

(a)

be sealed with adhesive or other sealant to prevent reopening,

(b)

be marked Confidential;

(c)

be addressed to the Employer at the address

BDS;

(d)

bear the name and identification number of the Contract as

defined in the BDS and SCC; and

(e)

provide a warning not to open before the specified time and date
for Bid opening as defined in the BDS.

24

provided in the

19.4 In addition to the identification required in ITB Sub-Clause 19.2, the inner envelopes shall indicate the
name and address of the Bidder to enable the Bid to be returned unopened in case it is declared
late pursuant to ITB Clause 21.
19.5 If the outer envelope is not sealed and marked as above, the Employer shall assume no
responsibility for the misplacement or premature opening of the Bid.

20. Deadline
for
Submission of
Bids

20.1 Bids shall be delivered to the Employer at the address specified above
no later than the time and date mentioned in the tender notice (Invitation
of bids).
20.2 The Employer may extend the deadline for submission of Bids by issuing
an amendment in accordance with ITB Clause 10, in which case all
rights and obligations of the Employer and the Bidders previously
subject to the original deadline shall then be subject to the new deadline.

21.

Late Bids 21.1 Any Bid received by the Employer after the deadline
prescribed in ITB Clause 20 shall be returned unopened to the Bidder.

22.
Withdrawal,
Substitution
and
Modification of
Bids

22.1 Bidders may withdraw, substitute or modify their Bids by giving notice in
writing before the deadline prescribed in ITB Clause 20.
22.2 Each Bidders withdrawal, substitution or modification notice shall be
prepared, sealed, marked and delivered in accordance with ITB Clauses
18 and 19, with the outer and inner envelopes additionally marked
WITHDRAWAL,
SUBSTITUTION
or
MODIFICATION
as
appropriate.
22.3 No Bid may be substituted or modified after the deadline for submission
of Bids.
22.4 Withdrawal of a Bid between the deadline for submission of Bids and
the expiration of the period of Bid validity specified in the BDS or as
extended pursuant to ITB Sub-Clause 15.2 may result in the forfeiture
of the Bid Security pursuant to ITB Clause 16. If the lowest or the
lowest evaluated bidder withdraws his bid between the periods
specified pursuant to clause 22.4, the bid security of the bidder shall be
forfeited and in addition the bidder shall pay to the Employer the
positive difference of sum, if any with the next lowest Bidder within 14
days of his withdrawal. If the bidder fails to pay the difference within the
said date, the bidder shall be debarred by a Competent Authority as per
law.
22.5 Bidders may only offer discounts to, or otherwise modify the prices of
their Bids, by submitting Bid modifications in accordance with this clause
or included in the initial Bid submission.

E. Bid
Opening
and
Evaluatio
n
23. Bid Opening

23.1 The Employer shall open the Bids, including modifications made
pursuant to ITB Clause 22, in the presence of the Bidders

representatives who choose to attend at the time and in the place

specified in the BDS. Any specific opening procedures required if
electronic bidding is permitted in accordance with ITB Sub-Clause
20.1 shall be as specified in the BDS.
23.2 Envelopes marked WITHDRAWAL shall be opened and read
out first. Bids for which an acceptable notice of withdrawal has
been submitted pursuant to ITB Clause 22 shall not be opened.
23.3 The Original & Copies will be opened at the bid opening. The
Bidders names, the Bid prices, the total amount of each Bid and of
any alternative Bid (if alternatives have been requested or permitted),
any discounts, Bid withdrawals, substitutions or modifications, the
presence or absence of Bid Security (and any other details the
Employer may consider appropriate) responses to any Bidding
Documents addenda; fulfillment of any such other specific formal
requirements as are prescribed in the Bidding Documents; and such
other details as the Employer may consider appropriate, shall be
announced by the Employer at the opening. This information also
shall be written on a notice board for the public to copy. Any Bid
price, discount or alternative Bid price not announced and recorded
shall not be taken into account in Bid evaluation.
The bid form including appendices to bid form, bill of quantities, price
schedules, bid securities, any discounts offered, and any other
important documents shall be initialed by all members of the Bid
Opening Committee. All corrections/overwriting will be noted and
recorded on each page of the Bill of Quantities. The bid evaluation
will be done using the Copies while the Original will be kept in safe
custody. If there are any discrepancies between the Original &
Copies, the Original shall prevail.
No Bid shall be rejected at Bid opening except for late Bids pursuant
to ITB Clause 21, non- submission of completed bid form with
signature, non-signing of IP and BOQ and insufficient Bid security.
Substitution Bids and modifications submitted pursuant to ITB Clause
22 that are not opened and read out at Bid opening shall not be
considered for further evaluation regardless of the circumstances.
Late, withdrawn and substituted Bids shall be returned unopened to
Bidders.
23.4 The Employer shall prepare Minutes of the Bid opening, including the
information disclosed to those present in accordance with ITB SubClause 23.3. The Minutes shall include, as a minimum:
(a) the Contract title and reference number;
(b) the Bid number;

(c) the Bid deadline date and time;

(d) the date, time and place of Bid opening:
(e) Bid prices, per lot if applicable, offered by the Bidders, including
any discounts and alternative offers;
(f) the presence or absence of Bid security and, if present, its

amount and validity;

(g) name and nationality of each Bidder, and whether there is a
withdrawal, substitution or modification;
(h) the names of attendees at the Bid opening, and of the Bidders
they represent (if any);
(i) details of any complaints or other comments made by
attendees/representatives attending the Bid opening, including
the names and signatures of the attendees/representatives
making the complaint(s) and/or comment(s); and

24.
Confidentiality

25. Clarificatio
n of Bids

26. Examination of
Bids and
Determination of
Responsiveness

(j) the
names,
designations
and
signatures of the members of the Bid
Opening Committee. The Bidders
representatives and attendees who are
present shall be requested to sign the
record. The omission of a Bidders or
other attendees signature on the
record shall not invalidate the contents
and effect of the record. A copy of the
record shall be distributed to all Bidders.
24.1 Information relating to the examination, clarification, evaluation and
comparison of Bids and recommendations for the award of a contract
shall not be disclosed to Bidders or any other persons not officially
concerned with such process until publication of the award to the
successful Bidder has been announced pursuant to ITB Sub-Clause
33.4. Any effort by a Bidder to influence the Employers processing of
Bids or award decisions may result in the rejection of his Bid.
Notwithstanding the above, from the time of Bid opening to the time
of Contract award, if any Bidder wishes to contact the Employer on
any matter related to the Bidding process, it should do so in writing,
including by electronic mail.
25.1 To assist in the examination, evaluation and comparison of Bids, the
Employer may, at the Employers discretion, ask any Bidder for
25
clarification of the Bidders Bid, including breakdowns of unit rates.
The request for clarification and the response shall be in writing,
including by electronic mail, but no change in the price or substance
of the Bid shall be sought, offered or permitted except as required to
confirm the correction of arithmetic errors discovered by the
Employer in the evaluation of the Bids in accordance with ITB Clause
27.
26.1 Prior to the detailed evaluation of Bids, the Employer shall determine
whether each Bid (a) meets the eligibility criteria defined in ITB
Clause 3; (b) has been properly signed; (c) is accompanied by the

Bid
Security;
and (d) is

substantially responsive to the requirements

Documents.

of the Bidding

26.2 A substantially responsive Bid is one which conforms to all the terms,
conditions and specifications of the Bidding Documents, without
material deviation or reservation. A material deviation or reservation
is one (a) which affects in any substantial way the scope, quality or
performance of the Works; (b) which limits in any substantial way,
inconsistent with the Bidding Documents, the Employers rights or the

Bidders obligations under the Contract; or (c) whose rectification

would affect unfairly the competitive position of other Bidders
presenting substantially responsive Bids.
26.3 If a Bid is not substantially responsive, it will be rejected by the
Employer, and may not subsequently be made responsive by
correction or withdrawal of the nonconforming deviation or
reservation.

27. Correction of
Errors

28. Currency
for Bid
Evaluation

29. Evaluation
and
Compariso
n of Bids

27.1

Bids determined to be substantially responsive shall be checked by

the Employer for any arithmetic errors. Errors shall be corrected by
26
the Employer as follows:
(a)

where there is a discrepancy between the amounts in figures

and in words, the amount in words shall govern; and

(b)

where there is a discrepancy between the unit rate and the line
item total resulting from multiplying the unit rate by the
quantity, the unit rate as quoted shall govern, unless in the
opinion of the Employer there is an obviously gross
misplacement of the decimal point in the unit rate, in which
case the line item total as quoted shall govern, and the unit
rate shall be corrected.

27.2 The corrections will be notified in writing to the individual bidder with
a request for written acceptance of the corrections within the
specified period as made in the notification. The amount stated in the
Bid shall be adjusted by the Employer in accordance with the above
procedure for the correction of errors and, with the concurrence of
the Bidder, shall be considered as binding upon the Bidder. If the
Bidder does not accept the corrected amount, the Bid shall be
rejected, and the Bid Security may be forfeited in accordance with
ITB Sub-Clause 16.5 (b).
28.1 Bids shall be evaluated as quoted in Ngultrum (Nu.) in accordance
with ITB Sub-Clause 14.1, unless a Bidder has used different
exchange rates than those prescribed in ITB Sub-Clause 14.2, in
which case the Bid shall be first converted into the amounts payable
in different currencies using the rates quoted in the Bid and then
reconverted to Ngultrum (Nu.) using the exchange rates prescribed in
ITB Sub-Clause 14.2.
29.1 The Employer shall evaluate and compare only the Bids determined
to be substantially responsive in accordance with ITB Clause 26.
29.2 In evaluating the Bids, the Employer shall determine for each Bid the
evaluated Bid price by adjusting the Bid price as follows:
(a)

making any correction for errors

pursuant to ITB Clause 27;

(b)

26

excl
udin

g provisional sums and the provision (unless no rates have

been asked from the bidders), if any, for contingencies in

In lump sum contracts, delete from as follows to the end, and replace with the following: as follows: where there is
a discrepancy between the amounts in figures and in words, the amount in words shall govern.

Section I: Instruction to Bidders

(ITB)

2
1

the Bill of Quantities,

competitively;

27

but including Daywork,

28

where priced

(c)

making an appropriate adjustment for any other acceptable variations, deviations

or alternative offers submitted in accordance with ITB Clause 17; and

(d)

making appropriate adjustments to reflect discounts or other price modifications

offered in accordance with ITB Sub-Clause 22.5.

29.3 The bids shall be evaluated by applying the evaluation criteria, sub criteria and points
system specified in the BDS. Each responsive bid will be given a technical score. Financial
bids of only those bidders who score the minimum technical score specified in the BDS will
be
nd
considered to for the 2 stage of bid evaluation to obtain an overall
price preference -financial score. Work will be awarded to the Bidder
obtaining the highest overall price preference -financial score which
will be obtained using the following formula:
90 % X (Lowest quoted bid among qualifying tenders/ financial bid
quoted by x) + 10% X Price preference score for x.
29.4 The Employer reserves the right to accept or reject any variation, deviation or alternative
offer. Variations, deviations and alternative offers and other factors which are in excess of
the requirements of the Bidding Documents or otherwise result in unsolicited benefits for
the Employer shall not be taken into account in Bid evaluation.
29.5 The estimated effect of any price adjustment conditions under GCC Clause 47, during the
period of implementation of the Contract, shall not be taken into account in Bid evaluation.
29.6 If the Bid which results in the lowest evaluated Bid price is abnormally low,
seriously unbalanced and/or front loaded in the opinion of the Employer, the Employer
shall require the Bidder to produce written explanations of, justifications and detailed
price analyses for any or all items of the Bill of Quantities, to demonstrate the internal
consistency of those prices with the construction methods and schedule proposed.
Such explanations, justifications and analyses may also include, but are not limited to,
details of the technical solutions chosen, exceptionally favorable conditions available
to the Bidder for the execution of the Contract, and the originality of the Works
proposed by the Bidder. After objective evaluation of the explanations, justifications
and price analyses, taking into consideration the schedule of estimated Contract
payments, if the Procuring Agency decides to accept the abnormally low, seriously
unbalanced and/ or front loaded price, the bidder shall be required to provide additional
differential security equivalent to the difference between the estimated amount and the
quoted

27
28

In lump sum contracts, delete Bill of Quantities and replace with Activity Schedule.
Daywork is work carried out following instructions of the Employer and paid for on the basis of time spent by workers,
and the use of materials and the Contractors equipment, at the rates quoted in the Bid. For Daywork to be priced
competitively for Bid evaluation purposes, the Employer must list tentative quantities for individual items to be costed
against Daywork (e.g., a specific number of tractor driver staff-days, or a specific tonnage of Portland cement), to be
multiplied by the bidders quoted rates and included in the total Bid price.

price in addition to the performance security.

30. Preference for

Domestic
Bidders

30.1 As indicated in the BDS, domestic contractors may receive a margin

of preference in Bid evaluation, for which this clause shall apply.
30.2 A domestic Bidder shall provide all evidence necessary to prove that
it meets the following criteria to be eligible for a margin of preference
in the comparison of its Bid with those of Bidders who do not qualify
for the preference. A domestic Bidder shall:
(a)

be registered within Bhutan, constituted under and governed

by the civil, commercial or public law of Bhutan, and have its
statutory office, central administration or principal place of
business there;

(b)

have majority ownership by nationals of Bhutan;

(c)

not subcontract more than twenty percent (20) percent of the

Contract Price, excluding provisional sums, to foreign
contractors, suppliers and/or consultants.

30.3 Joint Ventures, Consortia and Associations of domestic firms may

be eligible for the margin of preference provided that:
(a)

the individual partners satisfy the criteria of eligibility of ITB

Sub-Clauses 30.2 (a) and (b);

(b)

the JV/C/A is registered in Bhutan;

(c)

the JV/C/A does not subcontract more than ten percent (10%)
of the Contract Price, excluding provisional sums, to foreign
firms; and

(d)

the JV/C/A satisfies any other criteria specified for the purpose
of domestic preference eligibility, as specified in the BDS.

30.4 The procedure used to apply the margin of preference shall be as

stipulated in the BDS.

F. Award of Contract
31. Awa
rd
Crite
ria

32. Employers Right to accept any Bid and to Reject any or

all Bids

31.1 Subject to
ITB
Clause 32,
the
Employer
shall
award the
Contract to
the Bidder
whose Bid
has been

determined to be substantially responsive to the Bidding Documents

and who has scored the highest in the price preference financial
score of 100, provided that such Bidder has been determined to be
(a) eligible in accordance with the provisions of ITB Clause 3, and
(b) qualified in accordance with the provisions of ITB Clause 4.
32.1 Notwithstanding ITB Clause 31, the Employer reserves the right to
accept or reject any Bid, and to cancel the bidding process and reject
all Bids, at any time prior to the award of Contract, without thereby
incurring any liability to the affected Bidder or Bidders or any
obligation to inform the affected Bidder or Bidders of the grounds for

Section I: Instruction to Bidders

(ITB)

2
2

the Employers action.

33. Notification of
Award and
Signing of
Contract

29

33.1 The Bidder whos Bid has been accepted shall be notified in writing of
the award by the Employer prior to expiration of the Bid validity period.
This notification letter (hereinafter and in the General Conditions of
Contract called the Letter of Acceptance) shall state the sum that the
Employer shall pay the Contractor in consideration of the execution,
completion and maintenance of the Works by the Contractor as
prescribed by the Contract (hereinafter and in the Contract called the
Contract Price).
33.2 The Letter of Acceptance shall constitute the formation of the
Contract, subject to the Bidder furnishing the Performance Security in
accordance with ITB Clause 34 and signing the Contract
in
accordance with ITB Sub-Clause 33.3. It shall be accompanied by two
originals of the Contract in the form provided for in Section IV Forms
of Bid, Qualification Information, Letter of Acceptance, and Contract.
33.3 The Contract shall incorporate all agreements between the Employer
and the successful Bidder. It shall be signed by the Employer and
sent to the successful Bidder with the Letter of Acceptance. Within 15
days of receipt, the successful Bidder shall sign the Contract and
deliver it to the Employer.
33.4 Upon the furnishing by the successful Bidder of the Performance
Security, the Employer shall notify all other Bidders of the results of
the bidding and shall publish a notification of award on the Employers
website. The notifications to all other Bidders as well as the notification
posted on the Employers website shall include the following information:
(i)

34. Performance
Security

the Bid and lot numbers

(ii)name of the winning Bidder, and the Price it offered, as well as the
duration and summary scope of the contract awarded; and
(iii)

the date of the award decision.

34.1 Within fifteen (15) working days after receipt of the Letter of
Acceptance the successful Bidder shall deliver to the Employer a
Performance Security in the amount stipulated in the GCC and in the
form stipulated in the BDS, denominated in the type and proportions of
currencies in the Letter of Acceptance and in accordance with the
GCC.
34.2 If the Performance Security is provided by the successful Bidder in the
form of a Bank Guarantee, it shall be issued, at the Bidders option, by
a financial institution located in Bhutan, or by a foreign bank

Section I: Instruction to Bidders

(ITB)
acceptable
34.3 Failure

to
the
Employer
through a
correspond
ent
bank
located in
Bhutan.

of the successful Bidder to comply with the requirements of

ITB Sub-Clauses 33.3 and 34.1 shall constitute sufficient grounds for
cancellation of the award and forfeiture of the Bid Security. If the

2
3

lowest evaluated bidder fails to produce the performance guarantee &

sign the contract then apart from forfeiture of Bid Security, the bidder
will also be required to bear the positive difference in contract amount
between his bid and the bidder to whom the work has been awarded.
34.4 Upon the successful Bidders signing of the Contract and furnishing of
the Performance Security pursuant to ITB Sub-Clause 34.1, the
Employer shall promptly notify the name of the winning Bidder to each
unsuccessful Bidder in accordance with ITB Sub-Clause 33.4 and
shall discharge the Bid Securities of the unsuccessful Bidders
pursuant to ITB Sub-Clause 16.4.

35. Advance
Payment and
Security

36. Adjudicator

35.1 The Employer shall provide an Advance Payment on the Contract

Price as stipulated in the GCC, subject to a maximum amount, as
stated in the BDS. The advance payment shall be guaranteed by a
Security in the form provided for in Section X, Security Forms.

36
.1

The Employer may propose the person named in the BDS to

be appointed as Adjudicator under the Contract. If the Bidder
with this proposal, the Bidder should so state in the Bid. If, in
disagrees
the
Letter of Acceptance,
the Employer
has not agreed
onappointed
the
nomination
of the Adjudicator,
the Adjudicator
may be
by
mutual consent.

37. Work Plan

37.1 The contractor should submit the work plan for the
36 months (contract period) and submit along with the tender
documents at the time of the submission of tender. During the
construction period, the contractor has to prepare and submit Master
Work Schedule, Milestone progress and reports in Microsoft Project
Program. The client will track the construction work progress in Microsoft
Project Program.

38. Site Office

38.1 The contractor h a s t o construct a site
office for the H I D D Project m anagement team as per
drawings provided with the tender package including supply of
office furniture and the cost of the construction of the site office
will be borne by the contractor. The site office will be a semipermanent structure. On completion of the project, contractor will
dismantle and clear site. All materials including furniture will be a
property of the contractor.

Section II: Bidding Data

Sheet

2
5

Section II. Bidding Data Sheet30

A. General
ITB 1.1

The Employer is Health Infrastructure Development Division, Department of

Medical Supplies and Health Infrastructure, Ministry of Health, Thimphu.
The name and identification of the contract is/are Construction of 20 Bedded
Dzongkhag Hospital at Tsirang.

ITB 1.2
ITB 4.3

The Intended Completion Date is 5 (Five) m onths from the date of

commencement.
31

The information required from Bidders in ITB Sub-Clause 4.3 is modified

as follows: In addition to the ITB sub-clause 4.3, following certificates are
required

ITB 4.3 (j)

a) Trade license
b) CDB certificate
c) Tax clearance certificate
The ceiling for sub contractors participation and conditions are: Not applicable.

ITB 4.4

JV/Consortium/Association is not allowed to participate in this tender.

ITB 4.5

The qualification criteria in ITB Sub-Clause 4.5 are modified as: As specified
in the clause.

ITB 4.5 (b)

The essential equipment to32be made available for the Contract by the
successful Bidder shall be :

TOTAL
ITB 4.5 (c)

100

The skilled and experienced manpower required for the timely and quality
execution of the work to be made available for the Contract by the
33
successful Bidder shall be :

Bidding Document for the Construction of 20 Bedded Dzongkhag

Hospital at Tsirang.

Section II: Bidding Data

Sheet

2
6
Tier I

Project
Manager1(Civil)

Bachelor degree with 5

10 years or Diploma with

10-15 plus years of field
experience.

50

30

Diploma with 7 10
years of field experience.
Diploma with 5 7 years
of field experience.

Tier II

Site
Engineer- (1electrical &1civil)

Bachelor degree with

35 years.
Diploma with 5- years
of field experience.
Diploma with 3 years
of field experience.

Bidding Document for the Construction of 20 Bedded Dzongkhag

Hospital at Tsirang.

15

30

20

15

Tier III

Accountant

Site
Supervisor
(2 civil & 1
electrical)

Min diploma with 3 years

experience
Personnel with formal
training certification from
VTI or equivalent and at
least
5
years
of
experience

15

ITB 4.5f
ITB 4.6

Subcontractors experience and resources shall not be taken into account.

B. Bidding Documents
ITB 9.1

ITB 9.2

Pre-bid Meeting shall be held on NA At the address given below.NA

C. Preparation of Bids
ITB 11.1

The language of the bid is: English.

ITB 12.1

Any additional materials required to be completed and submitted by the

Bidders are None.

ITB 13.4

The Contract is subject to price adjustment in accordance with GCC

Clause 47.

ITB 14.2

The authority for establishing the rates of exchange shall be the Royal
Monetary Authority of Bhutan.

ITB 14.4

Bidders are not required to substantiate the rates and prices.

ITB 15.1

The Bid shall be valid for 90 days from the deadline for submission of
Bids stipulated in ITB Clause 20.1

ITB 16.1 & 16.2

The Bid Security amount is Nu. 5(five) million in the form of bank guarantee/cash
warrant drawn in favour of the Chief Administrative Officer, AFD, MoH, Thimphu.

ITB 17.1

Alternative Bids shall not be considered.

ITB 18.1

In addition to the original Bid, the number of copies to submit is one

duplicate
Copy .
D. Submission of Bids

ITB 19.1

Bidders may submit their Bids electronically: No.

ITB 19.3 (c)

The Employers address for the purpose of Bid submission is Chief

Engineer , Health Infrastructure Development Division Thimphu.

ITB 19.3 (d)

The name and Identification number of the contract as given in ITB 1.1.

ITB 19.3 (e)

The warning shall read DO NOT OPEN BEFORE: As per the

t ender n otification.

ITB 20.1

The deadline for submission of Bids shall be: As per the tender notification.

E. Bid Opening and Evaluation

ITB 23.1

ITB 30.1

The Bid opening shall take place on the same day as the closing day of the
bid submission at: As per the tender notification, Electronic bidding is
not permitted.
Margin of domestic preference of five percent (5%) Shall not apply.

ITB 30.3 (d)

Other criteria to be used for the purpose of assessing domestic

preference eligibility are: Not applicable.

ITB 30.4

The procedure used to apply the margin of preference shall be: Not applicable.

ITB 34.1

The Performance Security shall be provided in any one of the following forms:
(a) demand guarantee in the form provided for in Section X, Security Forms, or
(b) bankers certified cheque/cash warrant, or
(c) demand draft.

ITB 35.1

The Advance Payment (mobilization) shall be limited to Ten percent (10%)

of the Contract Price.

ITB 36.1

Disputes arising from the implementation of the provisions of the Contract

shall be settled first by negotiations between the Contractor and the Employer
in order to arrive at an amicable settlement. If negotiations fail between the
parties, the dispute shall be referred to the CDB and finally resolved by
Arbitration in accordance with rules and procedures of CDB enforced at the
time of submission through its National Arbitration Committee. Either party

ITB 37.1
ITB 38.1

court in Bhutan if the Arbitration award is not acceptable to them. If the case
is taken to the court, all the decisions made by the Arbitration committee will
be null
& void.
The contractor should submit the work plan for 36 months contract period
in Microsoft Project.
The contractor shall construct the site office for the Project Management team
as per the drawings attached with the tender and the cost for the same
shall be borne by the contractor.

2
9

Section III: Eligible

Countries

Section III. Eligible Countries

Eligibility for the Provision of Goods, Works and Services in RGoB-financed
Procurement

1.

2.

The RGoB permits firms and individuals from all countries to offer goods, works and services
for RGoB-financed projects. As an exception, firms of a Country, goods manufactured in a
Country or services provided from or by a Country may be excluded if:
1.1

As a matter of law or official regulation, the RGoB prohibits commercial relations with
that Country, or

1.2

By an Act of Compliance with a Decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations, the RGoB prohibits any import
of goods from that Country or any payments to persons or entities in that Country.

For the information of Bidders, at the present time firms, goods and services from the following
countries are excluded from this bidding:
(a)

With reference to Paragraph 1.1 above:

[insert list of countries prohibited under the law or official regulations of Bhutan]

(a)

With reference to Paragraph 1.2 above:

[insert list of countries which are barred under UN Security Council Chapter VII]

(Blank sheet )

Section IV: Forms of Bid, Qualification Information, Letter of Acceptance and Contract

31

Section IV. Forms of Bid, Qualification Information,

Letter of Acceptance, and Contract
1. Contractors Bid
Notes on Form of Contractors Bid
The Bidder shall fill in and submit this Bid form with the Bid.

Date:
Identification No. and Title of Contract:..
To:

Having examined the all the Bidding Documents (with reference ITB 8), including
addenda/clarification/amendment No., dated....., we offer to
execute the in accordance
with the Conditions of Contract accompanying this Bid for the Contract Price of
. and
contract period is.. Months/days and hereby accepted by our agency.
This Bid and your written acceptance of it shall constitute a binding Contract between us. We
understand that you are not bound to accept the lowest or any Bid you receive.
We hereby confirm that this Bid complies with the Bid validity and Bid Security required by the
Bidding Documents and specified in the Bidding Data Sheet.
We, including any subcontractors or suppliers for any part of the Contract, have nationalities from
eligible countries in accordance with ITB Sub-Clause 3.1;
We have no conflict of interest in accordance with ITB Sub-Clause 3.2;
Our firm, its affiliates or subsidiariesincluding any subcontractors or suppliers for any part of the
Contracthas not been declared ineligible under the laws or official regulations of Bhutan, in
accordance with ITB Sub-Clause 3.3.
Commissions or gratuities, if any, paid or to be paid by us to agents relating to this Bid, and to
contract execution if we are awarded the contract, are listed below:
Name and address of agent

Amount and
Currency

Purpose of
Commission or
gratuity

(if none, state none).

Section IV. Forms of Bid, Qualification

Information
Letters of Acceptance, and Contract

3
2

In case if I withdraw my bid after opening for whatsoever reasons, I agree to the forfeiture of the
EMD/Bid Security and also I shall be bound to pay the cost difference (positive) between my bid with
that of the next lowest evaluated bidder and failure on my part to do so within a month, will authorize
the client to debar my firm for a period of 2 years.

Our duly executed Integrity Pact Statement is attached herewith as Appendix A.

Authorized Signature:

(Affix Legal Stamp)

Name and Title of Signatory:

Name of Bidder:

Address:

Bidding Document for the Construction of 20 Bedded Dzongkhag

Hospital at Tsirang.

2. Qualification Information and Evaluation Table

Notes on Form of Qualification Information

The information to be filled in by Bidders in the following pages will be used for purposes of post
qualification/ evaluation or for verification of prequalification as provided for in Clause 4 of the
Instructions to Bidders. Attach additional pages as necessary. Pertinent sections of attached
documents should be translated into the Language of the Bid, as specified in BDS ITB 11.1. If
used for prequalification verification, the Bidder should fill in updated information only.]

1. CAPABILITY (70 MARKS) : list all information requested below.

1.1 Similar work Experience
Value of single largest work of similar size and nature:
Sl. No

Name
of Work

Start &
Completion Dates

Value

Name

of Work

of

OR
Value of 3 works of similar size and nature:
Sl. No

Name
1.
2.
3.

of Work

Start &
Completion Dates

Value

Name

of Work

of Employer

The bidder shall submit the following supporting documents for the above:
copies of completion certificate of the single largest work of similar size and
nature executed in the last 5 calendar years.
OR
copies of completion certificates of no more than 3 works of similar size and
nature executed in the last 5 calendar years(works whose completion date is
within the last 5 calendar years including the current one).
Partial completion will not be considered.

1.2 Access to adequate equipment (owned or hired):

Equipment

Owned( No)

Hired (No)

Total (No)

The bidder shall submit the following supporting documents for the above:
Copy of the registration certifcate of each equipment committed where applicable.
In case of hiring, copy of the lease agreement with the leaser.
In case of ownership, copy of the insurance policy for each equipment where
applicable.
1.3 Availability of skilled manpower:
Personn
el

Name of the
comitted personnel

Numb
er

Qualificatio
n

Number of years
of experience

The bidder shall submit the following supporting documents for the above:
Original signed copies of the CVs of all technical manpower committed.
Copies of Citizenship ID Cards or Passport/ Election ID cards (for foreign
workers) of all manpower committed.
Copies of contract agreements with all personnel if they have been hired on
contract by the contractor.
Copies of Provident Fund Account Documents of all personnel if they have
been recruited on permanent pay rolls by the Contractor.
1.4 Average Performance Score from previous work
The bidder shall submit Performance score card issued by the Procuring Agencies for
previous works. (past 5 calendar years)

2. CAPACITY (30 MARKS): list all information requested below.

2.1 Bid Capacity
BC = 2*A*N B
Where A= Average turnover of the contractor over the last 3 calendar years
N = Estimated duration of the project to be tendered
B= Portion of other ongoing works to be completed in the period that overlaps
with the current projects duration (N)
Name
Name of the
Start &
Value
Project
Completion
of
of Contract
completed
Dates
Employer
(in the last 3

Name of the
ongoing Project

Start

&
Completion

Value

Name

of

of

The bidder shall submit the following supporting documents for the above:
Completion certificates for all works having their completion dates in the last 3
calendar years ( including the current year)
Award letter certificates for all works having their start dates in the last 3 calendar
years ( including the current year)
2.2 Access to or Availability of Credit Line
Amount of credit
available

Issuing
Financial

The bidder shall submit the following supporting documents for the above:
The Bidder shall submit in the following from the bank or financial institutions in
Bhutan showing evidence of access to or availability of credit line for the project.

3. PRICE PREFERENCE PARAMETERS: list all information requested below.

3.1 Status (Incorporated, JV, proprietorship)
Constitution or legal status of Bidder:
Place of registration:
Principal place of business:
Power of attorney of signatory of Bid:
The bidder shall submit the following supporting documents for the above:
Copy of the certificate of incorporation issued by the registrar of companies
for the bidder in case an incorporated company is bidding alone.
Joint-venture agreement between the contractor involved, and copy of the
certificate of incorporation issued by the registrar of companies for the
incorporated partner in case two or more contractors are bidding together in a
joint venture.
Letter of Power of Attorney.
3.2 Employment of VTI Graduates
Total Number of workforce committed for the project:
Number of VTI graduates committed for the project:
The bidder shall submit a letter of commitment to employ VTI Graduates for the
execution of the project.
3.3 Commitment for internships to VTI graduates
The bidder shall submit a letter of commitment for internship to VTI graduates.

Notes on Evaluation Table

The following information is provided for the Bidders information on the scores that shall be
awarded to the bidders based on the qualification information submitted by the Bidders.

st

1 Stage
Sl.N Parameters
1
BIDDER QUALIFICATION
1.1
CAPACITY
a)
Similar Work Experience(0-10)
Aggregate size of similar
contracts (max 3) in the last 5
calendar yrs

Level of Achievement

Score

175% of current project size

10

125 175% of current project size

75 125% of current project size

4
0

OR

< 75% of current project size

Size of the largest similar

contract executed in the last 5
calendar yrs

100% of current project size

10

70 100% of current project size

50 70% of current project size

< 50% of current project size

b)

Access to equipment (0-25)

c)

Availability of skilled
manpower (0-25)

Sl.
N
d)

Parameters
Average performance score
from previous work (past 5
calendar years)

Total score for equipments out of

a score of 100 to be scaled down to
25
Total score for skilled manpower
out of a score of 100 to be scaled
down to 25
Level of Achievement
100%

1 mark lesser for every 5%

point decrease in score
roundedofoff20to Bedded Dzongkhag
Bidding Document for the Construction
Hospital at Tsirang.

Score
10

lower 5%
< 50%
1.2
a)

CAPABILITY
Bid Capacity (0-10)

Bid Capacity quoted bid

10

Bid Capacity is between 80

100% quoted bid

Bid Capacity is between 60

80% quoted bid

Bid Capacity is between 40

60% quoted bid

Bid Capacity < 40% quoted bid

Credit line available (unused)

(0- 20)

100% of estimated 3 month

project cash flow

20

Cash flow = Project

estimated cost/Project duration
x 3 months.

80 100% of estimated 3
month project cash flow

16

60 80% of estimated 3
month project cash flow

<60% of estimated 3 month

project cash flow

*BC =2 * A * N B

b)

END OF STAGE 1 out of a

score of 100
* Where

A = Average turnover of the contractor over the last 3 calendar years

N = Estimated duration of the project to be tendered
B = Portion of other ongoing works to be completed in the period that
overlaps with the current projects duration (that is, N)

A bidder needs to obtain a score of at least 65 points out of 100 on these parameters
in order to qualify for the next stage.

nd

2 Stage
Sl.N Parameters
2
BID EVALUATION
a)
Status
(incorporated,
JV, proprietorship).

b)

Employment

of
VTI
Graduates/local skilled
labourers

Level of Achievement

Score

Incorporated company bidding alone

40

Incorporated company as the lead

partner (>50% stake) in a bid by a
joint venture

20

Incorporated company as a non-lead

partner (<50% stake) in a bid by a
joint venture

10

Any other (proprietorship,

partnership etc.)

50% project skilled workforce to be

VTI

40

30 50% project skilled workforce

to be VTI

30

15 30% project skilled workforce

to be VTI
15% project skilled workforce to be
VTI
c)

Commitment for internships

to VTI Graduates

Internship opportunities for

VTI graduates equivalent to
10% of project workforce

15
0
20

Internship opportunities for

VTI graduates equivalent to 510% of project workforce

10

Internship opportunities for

VTI graduates 5% project
skilled workforce

Section IV. Forms of Bid, Qualification

Information
Letters of Acceptance, and Contract

4
0

The overall price preference financial score is obtained by using the following formula for
any qualified contractor (x):(Lowest quoted bid
among qualifying bids)
90 X --------------------------------------------

+ 10% of the Preference Score

of x

Financial bid quoted by x

The contractor getting the highest overall price preference-financial score is awarded the
work.

Letter of Acceptance
[Letterhead paper of the Employer]

Notes on Standard Form of Letter of Acceptance

The Letter of Acceptance shall be the basis for formation of the Contract as described in
ITB Clauses 33 and 34 of the Instructions to Bidders. This Standard Form of Letter of
Acceptance shall be filled in and sent to the successful Bidder only after evaluation of
Bids has been completed.
[Insert date]
To: [name and address of the Contractor]
This is to notify you that your Bid dated [insert date] for execution of the [insert name of the
Contract and identification number, as given in the SCC] for the Contract Price of the
34
equivalent of [insert amount in numbers and words] [insert name of currency], as corrected
35
and modified in accordance with the Instructions to Bidders is hereby accepted by our
Agency.
[Insert one of the following (x) or (y) options if applicable]
(x)

36

We accept that [insert name proposed by Bidder] be appointed as the Adjudicator.

(y)

We do not accept that [insert name proposed by Bidder] be appointed as

Adjudicator, and by sending a copy of this Letter of Acceptance to [insert name of
the Appointing Authority] we are hereby requesting [insert name], the Appointing
37
Authority, to appoint the Adjudicator in accordance with ITB Clause 36.1.

The Contract in duplicate is attached hereto. You are hereby instructed to:
(a) confirm your acceptance of this Letter of Acceptance by signing and dating both copies
of it, and returning one copy to us no later than 15 days from the date hereof;
(b) proceed with the execution of the said Works in accordance with the Contract;
(c) sign and date both copies of the attached Contract and return one copy to us within 15
days of the date hereof; and
(d) forward the Performance Security pursuant to ITB Sub-Clause 34.1, i.e., within 15 days
after receipt of this Letter of Acceptance, and pursuant to GCC Sub-Clause 51.1
.

Bidding Document for the Construction of 20 Bedded Dzongkhag

Hospital at Tsirang.

Section IV. Forms of Bid, Qualification

Information
Letters of Acceptance, and Contract

Authorized Signature:
Name and Title of Signatory:
Name of Agency:
Attachment: Contract

4
2

Contract
Notes on Standard Form of Contract
The Contract should incorporate any corrections or modifications to the Bid resulting from
corrections of errors (ITB Clause 27), price adjustment during the evaluation process (ITB SubClause 15.3), selection of an alternative offer (ITB Clause 17), acceptable deviations (ITB Clause
26), or any other mutually-agreeable changes allowed for in the Special Conditions of Contract,
such as changes in key personnel, subcontractors, scheduling, and the like.
This Contract is made the [insert day] day of [insert month], [insert year] between [insert name and
address of Employer] (hereinafter called the Employer) and [insert name and address of
Contractor] (hereinafter called the Contractor) of the other part.
Whereas the Employer is desirous that the Contractor execute [name and identification number of
Contract] (hereinafter called the Works) and the Employer has accepted the Bid by the Contractor
for the execution and completion of such Works and the remedying of any defects therein.
Now this Contract witnessed as follows:
1.

In this Contract, words and expressions shall have the same meanings as are respectively
assigned to them in the General Conditions of Contract hereinafter referred to, and they shall
be deemed to form and be read and construed as part of this Contract.

2.

In consideration of the payments to be made by the Employer to the Contractor as hereinafter

mentioned, the Contractor hereby covenants with the Employer to execute and complete the
Works and remedy any defects therein in conformity in all respects with the provisions of the
Contract.

3.

The Employer hereby covenants to pay the Contractor in consideration of the execution and
completion of the Works and the remedying of defects therein, the Contract Price or such
other sum as may become payable under the provisions of the Contract at the times and in
the manner prescribed by the Contract.

In Witness whereof the parties thereto have caused this Contract to be executed the day and year
first before written.
The Common Seal of [Witness entity]
was hereunto affixed in the presence of:

Signed, Sealed, and Delivered by the said

in the presence of:
Binding Signature of Employer [signature of an authorized representative of the Employer]

Binding Signature of Contractor [signature of an authorized representative of the Contractor]

Section V: General Conditions of Contract

44

Section V. General Conditions of Contract (GCC)

Notes on General Conditions of Contract
The General Conditions of Contract (GCC), read in conjunction with the Special Conditions of
Contract and other documents listed therein, should be a complete document expressing fairly the
rights and obligations of both parties.
The form of General Conditions of Contract that follows has been developed on the basis of
considerable international experience in the drafting and management of contracts, bearing in mind
a trend in the construction industry towards simpler, more straightforward language.
The form can be used directly for smaller ad measurement (unit prices or unit rates in a Bill of
Quantities) contracts and, with the modifications noted in the footnotes, it can be adapted for lump
sum contracts.
The use of standard General Conditions of Contract for building and civil works will promote
comprehensiveness of coverage, general acceptability of its provisions, savings in cost and time in
Bid preparation and review, and the development of a solid background of legal case histories.